Equity Fund-raising Increased by 142% to Rs1.86 Lakh Crore in FY22-23: Prime Database

IANS 26 March 2024

Investor Interest

Overall public equity fund-raising increased by a huge 142% to Rs1.86 lakh crore in 2023-24 from Rs76,911 crore in 2022-23.

Pranav Haldea, Managing Director, Prime Database, said 76 Indian corporates raised Rs 61,915 crore through main board IPOs in financial year 2023-24, 19% higher than the Rs52,116 crore mobilised by 37 IPOs in 2022-23.

The largest IPO in 2023-24 was from Mankind Pharma (Rs4,326 crore). This was followed by Tata Technologies (Rs3,043 crore) and JSW Infrastructure (Rs2,800 crore).

The overall response from the public, according to Prime Database was excellent. Of the 75 IPOs for which response data is available, 54 IPOs received a mega response of more than 10 times (of which 22 IPOs more than 50 times) while 11 IPOs were oversubscribed by more than 3 times. The balance 10 IPOs were oversubscribed between 1 to 3 times.

51 of the 75 IPOs are trading above the issue price, as per the closing price of 21 March, with an average return of 65%.

According to Pranav Haldea, IPO response was further buoyed by strong listing performance. Average listing gain (based on closing price on listing date) increased to 29%, in comparison to 9% in 2022-23. Of the 75 IPOs, 48 gave a return of over 10%. Vibhor Steel gave a stupendous return of 193% followed BLS E-Services (175%) and Tata Technologies (163%).

2023-24 saw 96 companies filing their offer document with SEBI for approval (in comparison to 75 in 2022-23). On the other hand, 2023-24 also saw 37 companies looking to raise nearly Rs59,000 crore letting their approval lapse, two companies looking to raise Rs1,000 crore withdrawing their offer document and SEBI returning the offer document of a further five companies looking to raise Rs2,500 crore.

The pipeline continues to remain strong. Nineteen companies proposing to raise nearly Rs 25,000 crore are presently holding SEBI approval while another 37 companies looking to raise about ₹45,000 crore are awaiting SEBI approval.

According to Haldea, despite the upcoming general elections, the next couple of months should still see a few IPOs being launched.

QIPs also saw a huge jump with 55 companies mobilising Rs68,933 crore through QIPs in 2023-24, nearly 7 times higher than Rs9,019 crore raised in 2022-23. The largest QIP was from Bajaj Finance raising Rs8,800 crore, accounting for 13% of the total QIP amount. QIPs were dominated by Banking and Financial Services companies with them accounting for 58% (Rs40,020 crore) of the overall amount.

Of the total equity mobilisation of Rs1,86,108 crore, the fresh capital amount was Rs1,25,267 crore (67% in comparison to 36% last year), the remaining Rs60,840 crore being offered for sale.

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